You can change the terms and re-check the estimate instantly.

Get a basic pre-approval in 3 minutes by entering some basic financial details.

Delays from back-and-forth between a local lender and their Appraisal Management Company can lead to costly delays. What is the turnaround time for appraisals across all their loans? A fully approved mortgage requires a fully completed appraisal. Make sure you know what to expect from your local lender around closing times and what they’ll do if something doesn’t go as expected.ĭo you fully underwrite your loans? If they’re working with outside underwriting parties, this could add time-consuming back-and-forth to collect or verify documentation before your loan can close. How often do customers’ closing dates need to change due to issues with the loan? Delays can be costly. How long does it take to get a pre-approval? This is the best way to learn how much you can realistically borrow-and your accompanying pre-approval letter will show sellers that you're serious about making offers. But make sure to ask them the following, more pointed questions to ensure that your timeline and needs are met.

Do you care about face-to-face interactions?Ī personal referral to a local lender who has a track record of being responsive and closing on time is hard to ignore.

Do you care about affordability and rates?.Questions to think about when considering a local lender We’ll arm you with the questions you can ask yourself, your local lender, and your real estate agent to ensure you’re making the right choice. We’re obviously biased, so let’s talk about the pros and cons. We built Better Mortgage to remove some of the pain points of working with a local lender (hello, 24/7 access and the ability to do everything online) while keeping the personalized service you know and love. But going with your local lender may not always be the best choice for you, depending on your needs.

That person-to-person “handshake” is how business has always been done, and working with someone who knows your neighborhood or city can provide a sense of comfort and confidence in the process. 'The loan must be secured by the taxpayer's main home or second home (qualified residence), and meet other requirements.'įind out more about home equity loan benefits and compare today's best home equity rates here.When you’re looking to buy a new home or refinance your current one, the thought of working with a local lender can be appealing. While the loan itself is not tax deductible, the interest you pay on it can be 'if the borrowed funds are used to buy, build, or substantially improve the taxpayer's home that secures the loan,' according to the IRS.

On the upside, both types of loans carry fixed interest rates, so the rate you lock in today won't go up over the lifetime of the loan.įinally, consider the added tax benefits of a home equity loan. Personal loans for home improvements may start within this range, but can go up to 20% APR or more. Home equity loans today are generally around 7% to 8% APR, but vary depending on your credit, location and other factors. Using your home as collateral may be an added risk, but it can also incentivize lenders to offer better rates. You may be able to borrow up to $320,000 with a home equity loan - whereas many home improvement loans can cap out at $100,000 (or less depending on your credit).Īnother factor is the interest rate. Because a home equity loan is based on the value of your home, you may be able to qualify for much more funding. There are a few factors you can use to determine whether a home equity loan or home improvement loan is right for you.įirst, think about the amount of money you need for your project. But consider how much the interest rate you qualify for could add to your total amount owed over time, and whether you can qualify for as much money as you need for your project before you decide. Home improvement loans can make good alternatives if you don't want to use your home as collateral toward a renovation project.

Equal home lender